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Market Digest Nigeria

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FGN Bond Prices Crash Across Most Maturities

Prices of FGN bonds traded at the OTC segment, last week dropped for most maturities amid sustained profit taking; the 20-year, 10 percent FGN JUL 2030 paper, the 10-year, 16.39 percent FGN JAN 2022 debt and the 5-year, 14.50 percent FGN JUL 2021 debt depreciated w-o-w by N0.06, N0.31 and N0.69 respectively; corresponding yields rose to 16.62 percent (from 16.61 percent), 16.47 percent (from 16.37 percent) and 16.77 percent (from 16.51 percent).However the price of the 7-year, 16.00 percent FGN JUN 2019 appreciated by N0.34 with the corresponding yield falling to 16.67 percent (from 16.89 percent).Elsewhere, FGN Eurobonds traded on the London Stock Exchange appreciated in value for all of the maturities amid sustained bargain hunting. The 10-year, 6.38 percent JUL 12, 2023 and 5-year, 5.13 percent JUL 12, 2018 bonds appreciated by USD0.74 (yield fell to 5.24 percent from 5.39 percent) and USD0.14 (yield fell to 3.29 percent from 3.49 percent) respectively.In addition, a 10-year FGN bond worth N20.00 billion matured in the just concluded week; hence, we anticipate boost in liquidity with attendant increase in bond prices at the OTC market in the new week.

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